On May 13, the S&P 500 hit a new all-time high, but Bitcoin lost its $80,000 support, dropping to $78,759. The rally was driven by AI-linked megacaps with earnings revisions, while Bitcoin, as a liquidity-only asset, suffered from negative funding rates, ETF outflows, and tightening liquidity. Future direction hinges on inflation and Fed policy.
The S&P 500 hit a new all-time high on May 13, but Bitcoin dropped below $80,000, exposing its vulnerability as a pure liquidity asset. The rally was driven by AI-powered megacaps while Bitcoin suffered from tightening liquidity and rising rate hike expectations.
On May 13, the S&P 500 hit a new all-time high while Bitcoin plunged below $80,000 support to $78,759. The rally was driven by megacap tech with earnings and AI revenue, leaving Bitcoin, which relies solely on liquidity, behind. Rising inflation expectations and ETF outflows compound the issue. Three scenarios are analyzed.
The S&P 500 reached a new all-time high on May 13, but Bitcoin fell below $80,000. The rally was driven by AI megacaps with strong cash flows, while Bitcoin, as a liquidity asset, suffered from tightening liquidity and rising rate hike expectations.
Global M2 is expanding but Bitcoin fails to rally, as US debt growth outpaces money supply while Treasury cash balances and reserve tightening block liquidity transmission. Analyst sees $60K as value floor but warns of continued choppiness until debt conditions turn favorable.
Hilbert Group CIO Russell Thompson warns that worsening global liquidity could pressure bitcoin in the near term, even if geopolitical tensions ease. Still, he expects policy support, regulatory clarity and improving macro conditions to help lift BTC later this year.
Hilbert Group CIO Russell Thompson says worsening global liquidity could pressure bitcoin in the short term, even if geopolitics improve. Still, he expects U.S. policy support, regulatory progress and evolving liquidity conditions to help BTC recover and finish the year significantly higher.
Hilbert Group CIO Russell Thompson warns of sharp global liquidity deterioration pressuring bitcoin short-term, but expects policy responses and improving conditions to drive bitcoin significantly higher by year-end.
